There is internal disagreement within OpenAI! The CFO pours cold water on the possibility of an IPO in 2026, but the CEO is optimistic and hopes for an earliest possible listing in Q4.

According to sources, there is a disagreement within OpenAI about the timing of its first initial public offering (IPO), with different opinions among senior leadership. CFO Sarah Friar has stated internally that due to the scale of preparation work needed, including ongoing improvements in processes, compliance, and organizational structure, the company may not be ready for listing by the end of 2026. Friar also expressed concerns about the financial risks OpenAI faces due to its significant investment in computing infrastructure. Projections suggest that the company's cash burn could exceed $200 billion before achieving positive cash flow. Additionally, OpenAI has committed to investing over $600 billion in cloud server capacity over the next five years. Friar specifically mentioned that the structure of these commitments is complex, with a significant portion of the recently announced $122 billion financing expected to come from Amazon.com, Inc. and NVIDIA Corporation, both of which are also OpenAI's cloud service and chip suppliers, posing potential risks to the capital structure. OpenAI also highlighted the risks associated with its partnership with Microsoft Corporation, warning internally that any changes in the relationship could have a negative impact on the company's operations. Friar's cautious stance contrasts with CEO Sam Altman, who has expressed a desire to push for an IPO as early as the fourth quarter of this year. Signs of internal tension have emerged: Friar reportedly excluded from certain financial discussions, including high-level meetings recently held with major investors regarding server purchases. It is noteworthy that Friar now reports to Fidji Simo, rather than directly to Altman, which deviates from the typical CFO reporting structure. However, despite these circumstances, both Friar and Altman have publicly stated that they remain aligned on the company's overall computing strategy.